Indian fertiliser companies are looking at buying phosphoric acid, used in making fertiliser, at USD 1,000-1,050/tonne for the December quarter, government official sources said. The sought price is cheaper than the rate prevalent in the international market.
The key international suppliers are OCP Morocco, JPMC Jordan, Senegal, etc. This price was USD 1,715 per tonne for last quarter that ended in September 2022.
The same figures correspond well with the OCP's price for the European market.
Phosphoric acid is a key raw material for manufacturing of di-ammonium phosphate (DAP) and other nitrogen, phosphorus and potassium (NPK) fertilisers. The international prices of phosphoric acid is decided on quarterly basis.
The OCP Group is a Moroccan state-owned phosphate rock miner, phosphoric acid manufacturer and fertilizer producer.
The sources further revealed that the government was also supportive of the Indian fertiliser companies' viewpoint to have prices of phosphoric acid below the range of $1,100 for the December quarter.
The suppliers are to fix the price for the next quarter starting from October. There has been steep fall in the international DAP prices during last quarter and it is expected that the prices of phosphoric acid will also see a similar decline from the quarter starting October.
"One Indian buyer is learnt to have purchased a cargo of phosphoric acid from Senegal at price of $1,200 per tonne, which is not commensurate with the corresponding reduction in prices of DAP," according to a source. (ANI)